The 'Goodwill' arising on acquisition is: MCQ with Answer and Explanation

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The 'Goodwill' arising on acquisition is:

A. Not amortised but tested for impairment annually

B. Written off immediately

C. Amortised over 10 years

D. Capitalised and depreciated

Answer: Option A

Solution (By JKExamLibrary)

Goodwill is not amortised but subject to annual impairment testing as per Ind AS 36.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

The 'Outstanding Salary' is recorded by:

A. No entry

B. Debit Salary A/c, Credit Outstanding Salary A/c

C. Debit Cash A/c, Credit Salary A/c

D. Debit Outstanding Salary A/c, Credit Salary A/c

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Correct Answer: Option B

Explanation:
To record accrued expense: Salary A/c Dr. To Outstanding Salary A/c.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Interim Dividend' is declared by:

A. Government

B. Board of Directors

C. Shareholders

D. Auditors

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Correct Answer: Option B

Explanation:
Interim dividend can be declared by the Board of Directors between annual general meetings.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

Which of the following is a method of costing used in the ship-building industry?

A. Contract costing

B. Process costing

C. Job costing

D. Batch costing

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Correct Answer: Option A

Explanation:
Ship-building is a long-term contract, so contract costing is appropriate.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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